Import PET to Vietnam extended journey north, MEG costs to remain firm

Import PET bottle to Vietnam continue to gallop higher this week in spite of soft buying sentiment as suppliers are free from sales pressure. Latest offers indicated $25-30/ton hike week on week with supply tightness remains in the limelight.

Indonesian PET stands at $1260/ton while Chinese cargoes are at $1185/ton CIF Vietnam, LC AS term. “Sales have been slow as buyers are unable to accede to the latest hike,” a trader commented. However, the source also expect the current firming trend to persist in the near term, adding possible hike of another $10-20/ton in the coming week.

In the upstream market, MEG costs based on CFR China term remains above the $1000/ton threshold for seven trading days straight and might persist in the current condition in the foreseeable term. This expectation is very much based on the current healthy demand condition from Chinese buyers and possible reduced availability from Saudi Arabia makers due to turnaround. In fact, Sharq is planning a 10 days shutdown at its 450,000 tons/year MEG unit by second half of January. Yanpet is looking to take the 520,000 tons/year MEG unit off-stream for 25 days in February and the 380,000 tons/year unit in March for 15 days.